With the national debt in the neighborhood of $12,000,000,000,000 (that's Trillion) it might be wise for the Republican Party to make it clear to the American people how they would address this issue for the 2010 election cycle. Given the fact that they LOST in 2006 AND 2008, it seems something different, rather than business as usual, is in order.
The underlying premise on which this is based is that intergenerational theft is immoral and it is a sign of weakness on several levels. If the Republican party is to regain the trust of the American people, we must be bold and honest.
Therefore, I propose a 12 step program for Republican Congressmen and Senators who seek re-election and for candidates running against incumbents of both parties.
1. Apologize for the Trillion dollars plus of debt created during the Bush years. Admit that it was wrong, and that the Party now understands Basic Economics and the proper role of government to support free market entrepreneurship.
2. Provide acknowledgement to: A.) the voters in California ( May '09 vote on taxes), B.) the entire tea party movement, and C.) the handful of patriots that gathered in Washington D.C. on 12 Sept 09 that we have heard their messages LOUD and CLEAR.
3. Make every Republican Candidate for Congress sign a pledge that they will not vote for a budget that is more than 90% of the revenues taken in two years previous. This means, that the budget for FY2012 would be set at 90% of the revenues collected in FY2010.
4. Create joint House and Senate Solution Groups to review the programs and projects of each cabinet level department with the goal of reducing discretionary expenditures by 40% overall. These groups would update their status monthly to the American people on a collection of linked websites.
5. Create joint House and Senate Solution Groups for each major entitlement program (or mandatory spending program) with the goal of either elimination of the entitlement (corporate welfare, crop subsidies, land bank, etc...), or restructuring the entitlement to be sustainable at current tax rates for the next 50 years. These groups too would report out monthly.
6. Pledge to restructure Medicaid and Medicare to be insurance premium assistance programs instead of fee for service programs. Include a Health Care Spending Account for each recipient to handle the little things.
7. Make every Republican Candidate for Congress sign a pledge to eliminate any and all bureaucracies created by the Health Care bills currently moving through Congress. Replace them with free market solutions that start by divorcing health insurance from employment.
8. Make every Republican Candidate for Congress sign a pledge to put a finite limit on the number of Czars the President is allowed to have (a number very close to zero) and the total number of paid positions the President may appoint. Perhaps an average of the last six administrations, prior to the current one, would be a set of numbers to start with.
9. Make every Republican Candidate for Congress sign a pledge to not vote for any bill that contains any earmarks. The candidates, especially the incumbents, must realize they are not royalty, but merely public servants.
10. Make every Republican Candidate for Congress sign a pledge to cut the strings to Fannie Mae and Freddie Mac and get the government out of the mortgage business.
11. Make every Republican Candidate for Congress sign a pledge to stop all bailouts of private companies and states run by liberal Democrats. Given the fact that the Soviet Union failed, no business on Wall Street is too big to fail, and neither is California.
12. Pledge to reform banking laws that will end the fractional reserve system that leads to bank failures and bailouts by the taxpayer. The goal would be to eliminate any further bailouts of the FDIC program.
These times require bold actions, not pastel efforts. If you want the support of the American people who still love this country, we need to be bold.
Sunday, November 29, 2009
Sunday, November 8, 2009
Why the George W. Republicans Must Go
Thank you all for your efforts keeping us safe after 9/11, but you botched the second most important role of government, and that is the management of the economy. The tax cuts were nice, but your reckless spending, poor monetary policy, and the senseless bailouts contributed to the economic mess we are in today. Thank you for your service, now make way for real Americans that understand that you must live within a budget, balance your check book, and not attempt to manipulate a free market, even for such noble causes such as home ownership. In addition, your lack of principled leadership opened the door for the Socialist Democrats and their surge to Socialism. There is a better way forward, but it requires men and women of courage, principles, and the willingness to challenge conventional wisdom.
The national debt is now close to $12 Trillion. The Interest alone is one of the largest budget items. This intergenerational theft is immoral to say the least. It is clear evidence of a lack of understanding of the science of economics. Significant cuts need to be made to reduce federal spending the 7th edition of the Cato Handbook for Policymakers has some great ideas to start with. We must shrink the size of the Federal Budget by shrinking the size of not only entitlements, but the structure of government as well.
Budgets should be based, not on projections, but by looking back at actual revenues. Therefore, the budget for 2102 would be based on the "actual revenues" of 2010. Congress and the administration would need to recognize the number from the Treasury Department and set priorities. The actual target should be 90% of revenues, with the additional 10% used to pay down the debt.
The current monetary policy of expanding the money supply and artificially low interest rates must be recognized as the foundation of boom and bust cycles. We must stop the presses, reform banking laws, and allow interest rates to float due to market forces. One only needs to look to Japan and their attempt to "manage their economy" that has resulted in a 20 year recession. Market forces are comprised of millions of private transactions every day. No amount of central planning, no matter how noble the attempt, can adequately manage an economy for sustained growth. Those that do not understand this should not be in government.
Principled leadership means that it is based on principles that have been tested and tried over time with documented success. It also means not compromising those principles in the name of shallow "bipartisan efforts". How can a Conservative compromise with a Socialist on intergenerational theft? Would a national debt of $5 Trillion be OK in the name of bipartisanship? The desire to "get along" with those who lust after power is merely a sign of weakness. It is this weakness that lead to the defeats of 2006 and 2008.
The way forward is to educate ourselves and the American people on free market solutions based on real world experience as an alternative to government dominance and expansion. We must compare and contrast our positions to those of the Socialist Democrats.
Teamwork would also help and is enabled by strong leadership. We need to learn to speak as a single voice of reason in putting forth solution sets for the issues of the day. Not every Republican can be an expert in all areas. We must allow the team members to focus and develop detailed solutions, and then share these solutions among the entire team. To date, I can find only four solution sets: energy, health care, budget, and stimulus at GOP.gov. I believe there are more issues facing our nation. More detail on each should also be included. Ordinary Americans held printed pages of the H.R. 3200 this past August at the robust town hall meetings. I believe, we owe them more details.
This is why the George W. Republicans must go. They have had their chance. This nation needs real people, not professional politicians, that understand economics, teamwork, and making things happen. We need people with a burning desire to stop the surge to socialism.
The national debt is now close to $12 Trillion. The Interest alone is one of the largest budget items. This intergenerational theft is immoral to say the least. It is clear evidence of a lack of understanding of the science of economics. Significant cuts need to be made to reduce federal spending the 7th edition of the Cato Handbook for Policymakers has some great ideas to start with. We must shrink the size of the Federal Budget by shrinking the size of not only entitlements, but the structure of government as well.
Budgets should be based, not on projections, but by looking back at actual revenues. Therefore, the budget for 2102 would be based on the "actual revenues" of 2010. Congress and the administration would need to recognize the number from the Treasury Department and set priorities. The actual target should be 90% of revenues, with the additional 10% used to pay down the debt.
The current monetary policy of expanding the money supply and artificially low interest rates must be recognized as the foundation of boom and bust cycles. We must stop the presses, reform banking laws, and allow interest rates to float due to market forces. One only needs to look to Japan and their attempt to "manage their economy" that has resulted in a 20 year recession. Market forces are comprised of millions of private transactions every day. No amount of central planning, no matter how noble the attempt, can adequately manage an economy for sustained growth. Those that do not understand this should not be in government.
Principled leadership means that it is based on principles that have been tested and tried over time with documented success. It also means not compromising those principles in the name of shallow "bipartisan efforts". How can a Conservative compromise with a Socialist on intergenerational theft? Would a national debt of $5 Trillion be OK in the name of bipartisanship? The desire to "get along" with those who lust after power is merely a sign of weakness. It is this weakness that lead to the defeats of 2006 and 2008.
The way forward is to educate ourselves and the American people on free market solutions based on real world experience as an alternative to government dominance and expansion. We must compare and contrast our positions to those of the Socialist Democrats.
Teamwork would also help and is enabled by strong leadership. We need to learn to speak as a single voice of reason in putting forth solution sets for the issues of the day. Not every Republican can be an expert in all areas. We must allow the team members to focus and develop detailed solutions, and then share these solutions among the entire team. To date, I can find only four solution sets: energy, health care, budget, and stimulus at GOP.gov. I believe there are more issues facing our nation. More detail on each should also be included. Ordinary Americans held printed pages of the H.R. 3200 this past August at the robust town hall meetings. I believe, we owe them more details.
This is why the George W. Republicans must go. They have had their chance. This nation needs real people, not professional politicians, that understand economics, teamwork, and making things happen. We need people with a burning desire to stop the surge to socialism.
Wednesday, October 28, 2009
Why Banks Fail and why the Taxpayer is left holding the IOU
The executive summary of the problem of bank failure can be summed up in a very few words: greed and compliance of politicians
A little Background:
The history of banking goes back to ancient Greece, Egypt, and Rome. Throughout history, banks have failed, pretty much for the same reason. The greed and mismanagement of the owners and the support of politicians (through the creation of central banks).
Two types of Accounts:
There have been successful banks that have lasted for more than 150 years when they have followed basic principles of bank management. The two types of accounts can be described in none Latin terms as deposit accounts and loan accounts.
Deposit accounts can best be described in today's language as the equivalent of a safe deposit box. The owner or depositor retains ownership of the funds and has immediate and full access on demand (during normal business hours). In history these accounts actual cost the depositor money akin to safe deposit box rental today. There was no interest paid on these funds.
The bank held these funds under what is known as 100% reserve. That means if ALL the customers came and ask for their money, all transactions would be covered by funds in the bank's vault.
Loan accounts are similar certificates of deposit. You give the bank use of your money for a fixed period of time and they agree to pay you a set interest rate. This is how banks make their money. They may pay you 4% interest over the year, but they may actually make 6%. You're typically happy with your cut, and the bank takes their cut. There is usually some risk of losing principle with these type of accounts, so buyer beware.
Today's Banks:
Next time you go to your bank, credit union, or savings and loan, ask the manager on duty what their reserve ratio is. Do not be surprised if they tell you a single digit number. This is referred to as the "fractional reserve system". The history of successful banks is built on those banks that have practiced the 100% reserve system and that have kept the two types of accounts separate, not only on paper, but in a physical sense as well.
Why the Taxpayer Gets left holding the bag:
Can you say: FDIC Federal Deposit Insurance Corporation. This is the arm of the federal government that bailouts banks (savings and loans, credit unions, etc...) with your money when the management team losses their hind end with the investments they made with your deposits. The leadership of the failed bank gets to keep their private jets, country club memberships, and million dollar houses, and you the taxpayer gets the bill.
This cozy relationship has come about over the centuries due the that simple fact that politicians have benefited from the banks taking their deposit account funds and loaning them to local government for projects and who knows what else. The political contributions of the banking and financial industries are quite a staggering sum. They tend to donate to both parties, to cover their bases.
What should be done:
Eliminate the FDIC program and tell banks that the leadership is responsible for any and all deposits. Suggest to all depositors, to understand the two types of accounts (deposit and loan) and the costs and potential risks of each. In addition, end the Federal Reserve system of loaning banks money to cover their loses. Hold the officers of the bank personally responsible. In Venice, Italy circa 1450, failed bank officials were hung.
Google the FDIC and add up their bailouts over the last 30 years, warning, it's a big number. It's time to bring some sanity to Washington and stop the inter-generational theft.
A successful representative republican (as outlined in the Constitution) requires an informed citizenry.
A little Background:
The history of banking goes back to ancient Greece, Egypt, and Rome. Throughout history, banks have failed, pretty much for the same reason. The greed and mismanagement of the owners and the support of politicians (through the creation of central banks).
Two types of Accounts:
There have been successful banks that have lasted for more than 150 years when they have followed basic principles of bank management. The two types of accounts can be described in none Latin terms as deposit accounts and loan accounts.
Deposit accounts can best be described in today's language as the equivalent of a safe deposit box. The owner or depositor retains ownership of the funds and has immediate and full access on demand (during normal business hours). In history these accounts actual cost the depositor money akin to safe deposit box rental today. There was no interest paid on these funds.
The bank held these funds under what is known as 100% reserve. That means if ALL the customers came and ask for their money, all transactions would be covered by funds in the bank's vault.
Loan accounts are similar certificates of deposit. You give the bank use of your money for a fixed period of time and they agree to pay you a set interest rate. This is how banks make their money. They may pay you 4% interest over the year, but they may actually make 6%. You're typically happy with your cut, and the bank takes their cut. There is usually some risk of losing principle with these type of accounts, so buyer beware.
Today's Banks:
Next time you go to your bank, credit union, or savings and loan, ask the manager on duty what their reserve ratio is. Do not be surprised if they tell you a single digit number. This is referred to as the "fractional reserve system". The history of successful banks is built on those banks that have practiced the 100% reserve system and that have kept the two types of accounts separate, not only on paper, but in a physical sense as well.
Why the Taxpayer Gets left holding the bag:
Can you say: FDIC Federal Deposit Insurance Corporation. This is the arm of the federal government that bailouts banks (savings and loans, credit unions, etc...) with your money when the management team losses their hind end with the investments they made with your deposits. The leadership of the failed bank gets to keep their private jets, country club memberships, and million dollar houses, and you the taxpayer gets the bill.
This cozy relationship has come about over the centuries due the that simple fact that politicians have benefited from the banks taking their deposit account funds and loaning them to local government for projects and who knows what else. The political contributions of the banking and financial industries are quite a staggering sum. They tend to donate to both parties, to cover their bases.
What should be done:
Eliminate the FDIC program and tell banks that the leadership is responsible for any and all deposits. Suggest to all depositors, to understand the two types of accounts (deposit and loan) and the costs and potential risks of each. In addition, end the Federal Reserve system of loaning banks money to cover their loses. Hold the officers of the bank personally responsible. In Venice, Italy circa 1450, failed bank officials were hung.
Google the FDIC and add up their bailouts over the last 30 years, warning, it's a big number. It's time to bring some sanity to Washington and stop the inter-generational theft.
A successful representative republican (as outlined in the Constitution) requires an informed citizenry.
Saturday, October 24, 2009
A Rebuttal to The American Health Care Solutions Act (H.R. 3713)
The Republicans get part of a viable solution with this latest attempt at an alternative to health insurance reform. This rebuttal is based on the outline posted at the Congressional website of Mike J. Rogers (MI-8) on 02 Oct 09.
I agree that government run health care or anything else (except national defense) is not desired. The bottom line is that real reform is needed, but, we need to deal with the root causes of the issue, not merely dance around the edges. What follows are positive critiques of the posted summary of the bill.
Pre-existing conditions: This should be handled in two ways. For the first 18 months after passage, the no exclusion for pre-existing conditions should be allowed as we transition to individual health insurance as opposed to employer based health insurance. But after the transition period, it would be necessary to allow private companies the right of refusal for those that wait too long to get coverage. Cancellation guidelines should be based on extreme consumer behavior (e.g. repeated drunk driving convictions), or lack of financial responsibility with respect to paying premiums.
Expansion of Federal block grants: The Federal government is $12 Trillion in debt. The last thing we can afford is MORE spending. Unless cuts are made elsewhere (refer to the 7th edition of the Cato Handbook for Policymakers for ideas), we cannot afford additional spending. Assistance to those that cannot afford their own insurance should be limited to Medicaid reformed as suggested below.
Create associations for small businesses: This is the basic premise that all in Government repeatedly miss. One of the root causes of the insurance issue is that for most Americans, health insurance is employment based. It is time to end this practice that became widespread during an earlier Socialist administration during WWII. Average Americans make the necessary decisions on their home, life, and automobile insurance, I am certain that they are competent enough to pick an appropriate health insurance policy. This would allow portability, reduce the burden on businesses large and small, and allow insurance companies to offer a wide variety of consumer based policies.
Allow purchase across state lines: This is on target, but only nibbles at the edge of the issue. According to research at the Heartland Institute, there are over 1900 state laws that negatively impact the free market forces that would dramatically lower costs and prices of not only health insurance, but health care services as well. All these laws need to be reviewed and dealt with in a logical manner. Those in state legislatures and state insurance bureaus need to learn that most Americans do not want nor need them to define the content of their insurance policy. Setting basic content analogous to Personal Liability and Property Destruction for automobile insurance could be agreed to nationwide. The rest of the content should be optional and left to the consumer.
Tort Reform: This part is on target and much needed. Special Medical Courts, Loser Pays, and limits to pain and suffering awards are but a few of the parts of tort reform needed.
Health Savings Accounts: This is one of the best things to come out of the Bush years (after our safety in the war against Islamofacism). Expanding these would help families manage their own health care without the need for government meddling at the state or national level.
Discounts for Healthy behavior: Skip the employers, allow the insurance companies the ability to set rates based on the consumer’s behavior. Analogous to discounts for auto insurance for a good driving record, this is only good business and a foundation to free market capitalism.
Medicare Medicaid Fraud: Reform all government programs from fee for service to insurance premium assistance. This would eliminate 80% of the fraud and make managing the programs much easier. It would also allow market forces to help set prices of services, not bureaucrats in Washington.
“Transparency Portals”: Is this something from Star Trek??? By allowing individuals and families to manage their own insurance without being related to employment, this (whatever it is) becomes unnecessary. Cut the cord to employment based health insurance.
It is time for those in government to realize, that the vast majority of Americans do not need them to “take care of them”. Free markets work, excessive government interference leads to failure. Limited regulation is acceptable, but most don’t need nor want basic decisions made for them by Congress.
Have you seen the approval numbers for Congress lately? Congress needs to stick to the enumerated powers and get those right. And, oh yeah, cut overall spending to 90% of revenues collected in the previous tax year.
I agree that government run health care or anything else (except national defense) is not desired. The bottom line is that real reform is needed, but, we need to deal with the root causes of the issue, not merely dance around the edges. What follows are positive critiques of the posted summary of the bill.
Pre-existing conditions: This should be handled in two ways. For the first 18 months after passage, the no exclusion for pre-existing conditions should be allowed as we transition to individual health insurance as opposed to employer based health insurance. But after the transition period, it would be necessary to allow private companies the right of refusal for those that wait too long to get coverage. Cancellation guidelines should be based on extreme consumer behavior (e.g. repeated drunk driving convictions), or lack of financial responsibility with respect to paying premiums.
Expansion of Federal block grants: The Federal government is $12 Trillion in debt. The last thing we can afford is MORE spending. Unless cuts are made elsewhere (refer to the 7th edition of the Cato Handbook for Policymakers for ideas), we cannot afford additional spending. Assistance to those that cannot afford their own insurance should be limited to Medicaid reformed as suggested below.
Create associations for small businesses: This is the basic premise that all in Government repeatedly miss. One of the root causes of the insurance issue is that for most Americans, health insurance is employment based. It is time to end this practice that became widespread during an earlier Socialist administration during WWII. Average Americans make the necessary decisions on their home, life, and automobile insurance, I am certain that they are competent enough to pick an appropriate health insurance policy. This would allow portability, reduce the burden on businesses large and small, and allow insurance companies to offer a wide variety of consumer based policies.
Allow purchase across state lines: This is on target, but only nibbles at the edge of the issue. According to research at the Heartland Institute, there are over 1900 state laws that negatively impact the free market forces that would dramatically lower costs and prices of not only health insurance, but health care services as well. All these laws need to be reviewed and dealt with in a logical manner. Those in state legislatures and state insurance bureaus need to learn that most Americans do not want nor need them to define the content of their insurance policy. Setting basic content analogous to Personal Liability and Property Destruction for automobile insurance could be agreed to nationwide. The rest of the content should be optional and left to the consumer.
Tort Reform: This part is on target and much needed. Special Medical Courts, Loser Pays, and limits to pain and suffering awards are but a few of the parts of tort reform needed.
Health Savings Accounts: This is one of the best things to come out of the Bush years (after our safety in the war against Islamofacism). Expanding these would help families manage their own health care without the need for government meddling at the state or national level.
Discounts for Healthy behavior: Skip the employers, allow the insurance companies the ability to set rates based on the consumer’s behavior. Analogous to discounts for auto insurance for a good driving record, this is only good business and a foundation to free market capitalism.
Medicare Medicaid Fraud: Reform all government programs from fee for service to insurance premium assistance. This would eliminate 80% of the fraud and make managing the programs much easier. It would also allow market forces to help set prices of services, not bureaucrats in Washington.
“Transparency Portals”: Is this something from Star Trek??? By allowing individuals and families to manage their own insurance without being related to employment, this (whatever it is) becomes unnecessary. Cut the cord to employment based health insurance.
It is time for those in government to realize, that the vast majority of Americans do not need them to “take care of them”. Free markets work, excessive government interference leads to failure. Limited regulation is acceptable, but most don’t need nor want basic decisions made for them by Congress.
Have you seen the approval numbers for Congress lately? Congress needs to stick to the enumerated powers and get those right. And, oh yeah, cut overall spending to 90% of revenues collected in the previous tax year.
Tuesday, September 29, 2009
Getting In Front of the Coming Revolution
We are all aware of the Tea Parties, the 9/12 Movement, and the awakening of the silent majority. All this in response to the far left policies and goals of the Obama administration. However, I have heard reports that Independents are leaving the Obama camp at a high rate, but not necessarily coming into the Republican camp at the same rate. There is even talk on the internet of a third party of Patriots. I believe this would be a disaster for America. The challenge to the Republican Party is to offer these Patriots somewhere to go, and a good reason to bring a lot of their friends.
I will start the discussion with three topics that I believe must be part of the enticement to those of the Patriot mindset and the newly awaken not so silent majority: 1) Honesty, 2) A Contract, and 3) An Action Plan that everyone can participate in.
A Little Honesty:
We must be honest with America and admit that the Republicans in Washington have not been the most fiscally prudent during the Bush years or even earlier. We must take pride in the fact G.W. kept us safe after 9/11, but not much got done on reducing the size and scope of the budget. The chart below from the Heritage Foundation makes my point.
Action Steps for Everyone:
Not everyone can be a policy wonk or party official, but we must engage all whom desire to participate with meaningful activities. Around the election, tasks are easy to find, but even before the season, engaging the Patriots in activities is key to spreading the message. Demonstrations, marches, e-mail blitzes, and the like can be a starting point. The list could be endless.
Summary:
We who care deeply about this country do not want it torn down by the Socialist Democrats. We must unite and utilize this new found energy and forge it into a single team to educate those that remain on the sidelines. Whether you have been active in the Republican party for 25 years or 5 months, we need to do something to get in front of this energy and guide it.
I will start the discussion with three topics that I believe must be part of the enticement to those of the Patriot mindset and the newly awaken not so silent majority: 1) Honesty, 2) A Contract, and 3) An Action Plan that everyone can participate in.
A Little Honesty:
We must be honest with America and admit that the Republicans in Washington have not been the most fiscally prudent during the Bush years or even earlier. We must take pride in the fact G.W. kept us safe after 9/11, but not much got done on reducing the size and scope of the budget. The chart below from the Heritage Foundation makes my point.
We must be honest with the American People and let them know, by strong statements by all party leaders, members, and operatives that we have heard their call for responsible government. A little humble pie goes a long way.
A Contract:
Similar to the effort in the '94 election cycle, a simple 10 - 12 item contract would give the Patriots something to grab onto and say "I stand for this ..." But the plan to implement must also be there. Each element would turn into a Solutions Group and details updated monthly as we challenge our new (and old) members to contribute specific actionable items.
After the election victory, timetables are set, U.S. code to be retired is identified and regular status updates provided. Each element leader would also prepare an educational package for use by each member of the caucus as talking points. Since not every member can be an expert in everything, teamwork is essential.
Linking the web sites to each members Congressional home page is key to having ready access. Blogs to gain input and ideas could also be created to provide Grassroots connectivity.
Similar to the effort in the '94 election cycle, a simple 10 - 12 item contract would give the Patriots something to grab onto and say "I stand for this ..." But the plan to implement must also be there. Each element would turn into a Solutions Group and details updated monthly as we challenge our new (and old) members to contribute specific actionable items.
After the election victory, timetables are set, U.S. code to be retired is identified and regular status updates provided. Each element leader would also prepare an educational package for use by each member of the caucus as talking points. Since not every member can be an expert in everything, teamwork is essential.
Linking the web sites to each members Congressional home page is key to having ready access. Blogs to gain input and ideas could also be created to provide Grassroots connectivity.
Action Steps for Everyone:
Not everyone can be a policy wonk or party official, but we must engage all whom desire to participate with meaningful activities. Around the election, tasks are easy to find, but even before the season, engaging the Patriots in activities is key to spreading the message. Demonstrations, marches, e-mail blitzes, and the like can be a starting point. The list could be endless.
Summary:
We who care deeply about this country do not want it torn down by the Socialist Democrats. We must unite and utilize this new found energy and forge it into a single team to educate those that remain on the sidelines. Whether you have been active in the Republican party for 25 years or 5 months, we need to do something to get in front of this energy and guide it.
We need to do it NOW. I suggest we challenge every county organization in the country to compile ideas and action items for a December '09 launch.
Monday, September 21, 2009
Conservative Contract for America v.2010
Below are my proposals for the Conservative Contract for America for this coming election cycle. The details for each item are found in a companion blog. Below the list are important measures that were overlooked in 1994 with regards to implementation.
- Firm support of our Military to win the War with Islamofacism
- Base foreign policy on the Peace Through Strength philosophy
- Cut Government spending at all levels and reduce taxes
- Create a Monetary Policy that greatly reduces the boom and bust cycles
- Move towards Energy Independence by exploring all domestic sources
- Secure the nation’s borders and enforce all current immigration laws
- Implement free market solutions to improve health care delivery
- Restructure the education of our youth
- Move Social Security to a market based solution
- Eliminate judicial tenure, and appoint only strict constructionists
- Revamp entitlement programs to support families and offers more than money
- Common sense solutions to protect the environment that does not overburden the economy
Key Factors for Implementation of the Contract
History tells us that the 1994 Contract for America was only marginally implemented. I believe it was the lack of a post election plan that lead to that failure. Below are my suggestions that I will fight for with Republican leadership:
- Each line item becomes a Solutions Group topic supported with caucus members from both the House and the Senate.
- Every Republican is a member of one Solutions Group. The top two leaders in each chamber may be excused.
- Each Solutions Group is charged with monthly updates to be posted on a web site as *.pdf files for review.
- The key focus within the first 100 days is to identify the specific legislative changes required to implement the plank. Identifying which sections of the US code that need to be eliminated will be a large part of the activity.
- By the end of the first 100 days, a detailed time table will be established for each plank based on the scope of each project.
- Every Republican will maintain links on their home page to the work of each Solutions Group to allow their constituents ready access to updates and the opportunity to contribute ideas.
- Each Solutions Group will identify a leader that will be the spokesperson for the caucus on their particular topic.
- Each Solutions Group will include development of educational materials to support the position and made available to each caucus member to be able to persuade the American people on why their path is best for the country.
I believe that these items are what was missing after 1994. These ideas should not be new to anyone who has worked in private industry or run a large project. They are simply the actions of real leadership that will lead to actually solving problems.
Sunday, September 20, 2009
Meaningful Welfare Reform - More than just Money
America is the most generous society on earth in terms of money donated to charitable causes year after year. Whether it be a flood, earthquake, or other disaster, the United States of America is there to offer a helping hand. However, at home, the cost of maintaining individuals and families on welfare year after year is too much a burden for the taxpayer. Therefore, fundamental reform is needed. I offer a concept that will extend the hand of assistance to those in need, but also challenge them to become self sufficient.
The motivation behind these concepts is the underlying premise that life is not fair. Can everyone play basketball at the level of Michael Jordan? Can everyone drive a race car like Jeff Gordon? Can everyone make deals like Donald Trump? Certainly, life is NOT fair, but rather, life is what you make of it. How many hours did Michael Jordan spending playing basketball prior to going pro? How many races did Jeff Gordon not finish on his way to the NASCAR championship? Success requires effort, desire, and a little luck. Life requires effort.
Therefore, the proposal for welfare reform is to help those that seek assistance to understand that they control their future by the amount of effort they are willing to put into their situation. Many people fail because they make poor choices, or in some cases, many poor choices. The heart of any assistance program must be to assist those to learn how to make good choices and to be self sufficient.
Some of the specifics could be:
1. Require all adults on welfare to be enrolled in adult education classes
2. Provide training on making good choices. Not what to choose, but how to weigh the costs and benefits and long and short term consequences of choices.
3. Provide relationship training. How to relate to people in a positive manner, whether it be family, friends, potential employers, or other service providers.
4. Help them to identify and or build support systems within their extended families and communities.
5. Help them learn how to manage their emotions.
6. Teach them the expectations of society at large. They need to know the unspoken rules of society.
7. Challenge them to complete all of the above within a set time frame.
The best resource I have found on this is the work of Dr. Ruby K. Payne, "A framework for Understanding Poverty" 4th edition 2005 aha process inc. Much of the list above comes from the cited work.
Merely handing out money, without support is cruel and cold. If we want to truly assist those in need, we need to understand the entire situation and support in ways that extend beyond financial. A combination of government assistance along with faith based initiatives could be the solution we have been missing to impact much of the poverty in America today.
We need to challenge those that need assistance, but we also need to challenge ourselves to respond to the whole situation with a different perspective.
An Alternative Budget Setting Process
The current level of deficit spending by Congress and the Whitehouse is unsustainable. The massive annual budget deficits only add to the $12+ Trillion national debt. That’s the number 12 with 12 zeros behind. This is what we want to leave for our children’s children? This intergenerational thief is immoral and not the sign of an intelligent society.
What I want to present here is an alternative means for setting spending targets and making decisions about the budget. Currently, Congress and the Whitehouse set their targets on what they think will help them get re-elected and “mandatory spending” programs. The alternative is based on reality and looks back three years and sets the budget on actual revenues. I believe this is a much more prudent means of fiscal responsibility then continuously piling up debt on our children’s children.
In example, say that in 2009 the Federal Government takes in $2.2 Trillion in tax revenues and fees. That would drive the budget in 2012 to be approximately $2.0 Trillion, with approximately 0.2 Trillion to pay down the $12 Trillion debt. The $2,000,000,000,000 number would be hung on the wall and be the ceiling of the budget.
Congress and the Whitehouse would have to proportion the dollars in a way that serves the Taxpayers of the country best. A prioritized list of departments, bureaus, projects, and entitlements along with the dollar amount for each would be published for review by the Taxpayers and voted on in Congress. A running total of the amount would drive a line be drawn on the list (a.k.a. “water line”) when the money runs out. If your project, bureau, or department does not make the list above the line, then there is no funding and you spend no money.
Congress and the Whitehouse would have to make their case to prioritize all programs; Department budgets, pet projects, and entitlements (personal and corporate) would either be above the water line, or get zero funding. This would have to be done each year.
This would necessitate the abandonment of the current fiscal irresponsibility and the ability to hide behind the weak argument of “mandatory spending”. Every program, bureau, and entitlement would need to be reassessed each year. Like families, small business, and private organizations, Congress will be forced to live within a budget set by the American People, not the special interests and campaign contributors.
Intergenerational thief is immoral and not sound economic policy. The insanity must be stopped.
What I want to present here is an alternative means for setting spending targets and making decisions about the budget. Currently, Congress and the Whitehouse set their targets on what they think will help them get re-elected and “mandatory spending” programs. The alternative is based on reality and looks back three years and sets the budget on actual revenues. I believe this is a much more prudent means of fiscal responsibility then continuously piling up debt on our children’s children.
In example, say that in 2009 the Federal Government takes in $2.2 Trillion in tax revenues and fees. That would drive the budget in 2012 to be approximately $2.0 Trillion, with approximately 0.2 Trillion to pay down the $12 Trillion debt. The $2,000,000,000,000 number would be hung on the wall and be the ceiling of the budget.
Congress and the Whitehouse would have to proportion the dollars in a way that serves the Taxpayers of the country best. A prioritized list of departments, bureaus, projects, and entitlements along with the dollar amount for each would be published for review by the Taxpayers and voted on in Congress. A running total of the amount would drive a line be drawn on the list (a.k.a. “water line”) when the money runs out. If your project, bureau, or department does not make the list above the line, then there is no funding and you spend no money.
Congress and the Whitehouse would have to make their case to prioritize all programs; Department budgets, pet projects, and entitlements (personal and corporate) would either be above the water line, or get zero funding. This would have to be done each year.
This would necessitate the abandonment of the current fiscal irresponsibility and the ability to hide behind the weak argument of “mandatory spending”. Every program, bureau, and entitlement would need to be reassessed each year. Like families, small business, and private organizations, Congress will be forced to live within a budget set by the American People, not the special interests and campaign contributors.
Intergenerational thief is immoral and not sound economic policy. The insanity must be stopped.
Saturday, September 19, 2009
Potential Candidate for U.S. Congress: MI-8th
Richard C. Grimes
Howell, Michigan
Potential Candidate for U.S. Congress: MI - 8th District
I am running for Congress to:
Howell, Michigan
Potential Candidate for U.S. Congress: MI - 8th District
I am running for Congress to:
-Identify and help implement free market solutions for issues such as health care, the environment, education, welfare, and the domestic auto industry.
- Cut Federal spending to no more than 95% of the tax revenues collected two years previous.
- Eliminate government programs such as the bailouts of Wall Street, corporate subsidies, and payments to those in this country illegally.
-Stimulate major job growth with Lower Corporate taxes (which are the second highest in the world) and lower Capital Gains taxes, which encourage investment directly and privately into our economy.
Political Theory and Strategy:
Our Country needs new people with real work life experiences that can develop free market solutions and solve problems. We need people that can use life experiences to educate the voting public. We need new people with vision and courage that will challenge the Beltway group think.
My strategy will be to challenge everyone in a constructive manner to think and act differently, to achieve different results. I will challenge all candidates for the House to join with me and create a "Conservative Contract for America" based on timeless principles of individual liberty, balanced spending, self reliance, and limited government.
A New Approach:
Teamwork wins, whether on the sports field, on the manufacturing floor, or in solving issues facing our nation. One of my favorite operating philosophies came from a sportscaster during the Stanley Cup Finals (Professional Ice Hockey): "It is not the team with the best players that typically wins, but the players with the best team".
I have spent 20+ years in the auto industry becoming a proficient problem solver by identifying the root cause of an issue and working with all stake holders to develop an acceptable solution. Structured problem solving is a science that can be applied at all levels, in all areas. The American Society for Quality, of which I am an active member, has expanded from manufacturing to pharmaceuticals, and health care among others.
Combining Teamwork and Structured Problem Solving is the most efficient means for a large organization to make progress. Certainly, there will be disagreements, but by focusing on the issues in a structured manner, the best solutions will rise to the top. I have 20+ years experience of making things happen in exactly this way. This is what I will to take to Congress to serve the people of Michigan.
Work History
More than 20 years in the domestic auto industry, traveling the United States, Canada and Mexico, as a professional problem solver in manufacturing plants. My work was focused on technical and organizational issues at facilities not meeting their quality targets. My job was to understand the issues and challenge the organization in a constructive manner to think and act differently to achieve different results.
Family History
Raised in suburban Detroit and in Howell, MI where my father worked for automotive suppliers. Married in 1980 and adopted two children from Russia in 1996, (the homeland of my father-in-law). Spent three years living and working in Mexico as a problem solver in the auto industry then relocated to our current home in Howell to be close to my elderly parents. Our daughter is a 2009 high school graduate and our son will graduate in 2012.
Education
1973 Graduate of Howell High School
1986 B.S. degree Wayne State Univ. School of Engineering - Chemical Eng.
1988 Graduate of Dale Carnegie courses on interpersonal relations
1992 Master’s Purdue Univ. Quality and Mfg. Sciences
Political Involvement
First got active at the grassroots level in the mid 1990's but had to resign in early 2000 due to relocation to Mexico and extensive traveling. Became active again at the county and district level after the election of Nov. 2008 when the almost constant traveling stop.
Problem Solving Approach Example: The Health Care Crisis:
There are six major players in the Health Care system:
1. The Consumer
2. Health Care Providers
3. The Insurance Industry
4. Employers
5. State Governments
6. The Federal Government
The parties are listed in their relative importance in the role that they should play. Any successful free market solution must look at the interaction of all six groups. The Federal Government has failed at providing efficient health care for the poor and elderly. The States impact price and competition with over 1900 laws governing health insurance.
A free market plan would be to transform health insurance to a consumer directed plan similar to automobile insurance. Everyone has catastrophic coverage, but everything else is optional. States would need to get out of the regulatory business with their community pricing and guaranteed acceptance laws. Employers should also get out of the business and let the people have the tax advantages and make it portable.
The role of the state and federal governments would be limited to helping those with debilitating health issues.
Teamwork and structured problem solving could easily develop a solution that all could support and keep medical decisions in the hands of Americans, not bureaucrats and in addition, drive down costs.
Corporate Politics to Congressional Politics
I may have no "elected official" line items on my resume, but I have almost 25 years of structured problem solving and political experience in a large global organization. My experience has focused on solving technical and organizational issues in the auto industry that has helped my employer "close the gap" in vehicle quality to any and all competitors. This statement is supported by recent J.D. Power Initial Quality Surveys. Unfortunately, I was not involved in the business office where the tough decisions were not handled effectively.
Structured problem solving is the science of using relatively simple techniques to identify the root cause of a problem and propose cost effective solutions. Industry has several names for this process "Lean Six Sigma" and "Red X Methodologies" are but two of many. The common thread is to fully understand the customer's expectations, translate them in to product or process characteristics, and then determine the most efficient means to meet those expectations. I believe this strategy can be applied to government as well. Whether the topic is health insurance reform or border security, a structured approach to the problem will provide a solution that most can support.
My work has included forging consensus among different plants, vehicle platforms, and even global regions. Often my work has been to present a draft solution and then lead the consensus building between the various stakeholders involved or to take a collection of proposals and shape them into one coherent solution that can be widely applied. I believe these skills are indeed applicable to working in Congress to help all understand the root cause of our problems and build consensus around solution options.
During my all to frequent business travels, in lieu of playing tourist, I would read books and articles on economic policy, one of my several hobbies. I believe that through the internet and self education, there is no reason to be uninformed on any topic one chooses to pursue. I believe I have acquired a significant understanding of the science of economics and its application to government policy. The bottom line is that massive government spending did not cure the depression in the 1930s and will not work today. We need a different course.
In summary, the challenges facing our country today are serious, but not impossible. It will take people of passion, courage, and the experience at solving complex problems to deal effectively with the issues. This is why I ask for your support.
Structured problem solving is the science of using relatively simple techniques to identify the root cause of a problem and propose cost effective solutions. Industry has several names for this process "Lean Six Sigma" and "Red X Methodologies" are but two of many. The common thread is to fully understand the customer's expectations, translate them in to product or process characteristics, and then determine the most efficient means to meet those expectations. I believe this strategy can be applied to government as well. Whether the topic is health insurance reform or border security, a structured approach to the problem will provide a solution that most can support.
My work has included forging consensus among different plants, vehicle platforms, and even global regions. Often my work has been to present a draft solution and then lead the consensus building between the various stakeholders involved or to take a collection of proposals and shape them into one coherent solution that can be widely applied. I believe these skills are indeed applicable to working in Congress to help all understand the root cause of our problems and build consensus around solution options.
During my all to frequent business travels, in lieu of playing tourist, I would read books and articles on economic policy, one of my several hobbies. I believe that through the internet and self education, there is no reason to be uninformed on any topic one chooses to pursue. I believe I have acquired a significant understanding of the science of economics and its application to government policy. The bottom line is that massive government spending did not cure the depression in the 1930s and will not work today. We need a different course.
In summary, the challenges facing our country today are serious, but not impossible. It will take people of passion, courage, and the experience at solving complex problems to deal effectively with the issues. This is why I ask for your support.
Republican Party Grassroots Quarterly - Spring 2009 A critique
Date: 29 May 2009
To: Chairman Michael Steele
Rep. John Boehner
Subject: Grassroots Quarterly - Spring 2009 A critique
The informed grassroots activist did not need a rehash of what the Socialist Democrats have been up to since 20 Jan 09. What we needed to read was an outline of some of the "Bold", "New", and "Innovative" Republican Solutions. This phrase was used at least twice in the 12 pages, but nowhere could I find an example of one of the bold new innovative solutions. The question "Where's the Beef?" came to mind.
Rep. Boehner talked about "Solutions Groups", again, an interesting phrase, but "Where's the Beef?" Where can we see their work?
Overall I give both of you a D- for content and effort. After 20+ years of communicating across a global organization to unify around common processes and projects, I feel I must offer some suggestions to make communication with the Grassroots Activists more appealing and more profitable for your organizations:
1. Change to a monthly mailing (or *.pdf) with each month focused on a topic with a report out from one of the Solutions Groups. A simple survey of who wants a hardcopy and who can handle a e-copy could reduce costs.
2. Each report is to include substantial details, numbers, graphics, and sources that can be used by local and state candidates.
3. Each Solution Group maintains a web site where interested activists may keep abreast of their progress and post ideas that may move the development of the solution set along.
4. Each Solution Group has a target date for completion, no later than May of 2010 to allow candidates to utilize the information as they prepare to win in November.
I have made my living challenging people and organizations to think and act differently to achieve different results. Based on the last two election cycles, I would say that the RNC needs a healthy dose of different.
For the sake of this Great Country: Lead, Follow, or get the Hell out of the way.
Sincerely,
Richard C. Grimes
Revolutionary Conservative
Howell, Michigan
To: Chairman Michael Steele
Rep. John Boehner
Subject: Grassroots Quarterly - Spring 2009 A critique
The informed grassroots activist did not need a rehash of what the Socialist Democrats have been up to since 20 Jan 09. What we needed to read was an outline of some of the "Bold", "New", and "Innovative" Republican Solutions. This phrase was used at least twice in the 12 pages, but nowhere could I find an example of one of the bold new innovative solutions. The question "Where's the Beef?" came to mind.
Rep. Boehner talked about "Solutions Groups", again, an interesting phrase, but "Where's the Beef?" Where can we see their work?
Overall I give both of you a D- for content and effort. After 20+ years of communicating across a global organization to unify around common processes and projects, I feel I must offer some suggestions to make communication with the Grassroots Activists more appealing and more profitable for your organizations:
1. Change to a monthly mailing (or *.pdf) with each month focused on a topic with a report out from one of the Solutions Groups. A simple survey of who wants a hardcopy and who can handle a e-copy could reduce costs.
2. Each report is to include substantial details, numbers, graphics, and sources that can be used by local and state candidates.
3. Each Solution Group maintains a web site where interested activists may keep abreast of their progress and post ideas that may move the development of the solution set along.
4. Each Solution Group has a target date for completion, no later than May of 2010 to allow candidates to utilize the information as they prepare to win in November.
I have made my living challenging people and organizations to think and act differently to achieve different results. Based on the last two election cycles, I would say that the RNC needs a healthy dose of different.
For the sake of this Great Country: Lead, Follow, or get the Hell out of the way.
Sincerely,
Richard C. Grimes
Revolutionary Conservative
Howell, Michigan
Conservatives and Race
I and my fellow conservatives have experience at being labeled "racists, bigots, homophobes, etc..." However, I would like to present an argument that if you want to have a post-racial discussion of the issues, then find a True Conservative. Because we are the ones that see only issues and ideas, consider only effort and passion, not gender, pigment in the skin, cultural heritage, or religion. True Conservatives focus on the issues, not the speaker. We will listen to all constructive ideas.
During my almost 25 years in the auto industry I have worked for and with people from all races, genders, and a large percentage of industrial cultures of the world. One day while walking down the main corridor at our engineering center, I encountered people speaking no fewer than five different languages. During my three years while on assignment in Mexico, I learned a lot about seeing America through the eyes of another culture. In addition to my work, my wife and I adopted our children from her father's homeland of Russia. Spending only ten days in country taught me so much about the passion that people have towards children and the dangers of a socialist state. I have first hand knowledge that there are indeed, good people everywhere you go.
True Conservatives, when working on a solution to an issue do not care where the ideas and contributions come from. We care only about completing the mission at hand. We will work with anyone that demonstrates passion, integrity, and energy to solve a problem.
We do not engage in identity politics, we don't talk in a local drawl when we go down south, we don't pander to a particular group. We don't think that it is un-American to enforce our immigration laws. We only want to move the solution set forward to completion and help all Americans have a better chance at the American Dream.
True Conservatives do not appreciate the labels of "Afro-American, Hispanic-American, and the like. We prefer the terms of "Americans of (insert cultural name here) descent. We must recognize that we are in this great experiment together, and that we sink or swim together.
We don't care that not every sports team or career classification has the "politically correct" proportion of each ethnic group. We care only about passion, integrity, and contribution. If your child was sick or injured, would you care about the diversity of the medical team? Hopefully you would only care about their competence and experience.
At the same time, we recognize that there have been injustices in the past. Slavery, segregation, and the Jim Crow laws that were part of the culture of America until the 1960s were dark stains on our nation's history. But in the spirit of Dr. Martin Luther King, we have accepted the challenge to look into a person's heart and soul when we make judgments, not merely at their pigment level, which rest room they use, or how they pray. We do this to honor those that paid the price of the struggle many decades ago and we teach our children the same. True Conservatives, and others, believe that we have come a long way over the last 50+/- years.
Therefore, if you want to discuss the issues in a post-racial environment, find a true Conservative.
During my almost 25 years in the auto industry I have worked for and with people from all races, genders, and a large percentage of industrial cultures of the world. One day while walking down the main corridor at our engineering center, I encountered people speaking no fewer than five different languages. During my three years while on assignment in Mexico, I learned a lot about seeing America through the eyes of another culture. In addition to my work, my wife and I adopted our children from her father's homeland of Russia. Spending only ten days in country taught me so much about the passion that people have towards children and the dangers of a socialist state. I have first hand knowledge that there are indeed, good people everywhere you go.
True Conservatives, when working on a solution to an issue do not care where the ideas and contributions come from. We care only about completing the mission at hand. We will work with anyone that demonstrates passion, integrity, and energy to solve a problem.
We do not engage in identity politics, we don't talk in a local drawl when we go down south, we don't pander to a particular group. We don't think that it is un-American to enforce our immigration laws. We only want to move the solution set forward to completion and help all Americans have a better chance at the American Dream.
True Conservatives do not appreciate the labels of "Afro-American, Hispanic-American, and the like. We prefer the terms of "Americans of (insert cultural name here) descent. We must recognize that we are in this great experiment together, and that we sink or swim together.
We don't care that not every sports team or career classification has the "politically correct" proportion of each ethnic group. We care only about passion, integrity, and contribution. If your child was sick or injured, would you care about the diversity of the medical team? Hopefully you would only care about their competence and experience.
At the same time, we recognize that there have been injustices in the past. Slavery, segregation, and the Jim Crow laws that were part of the culture of America until the 1960s were dark stains on our nation's history. But in the spirit of Dr. Martin Luther King, we have accepted the challenge to look into a person's heart and soul when we make judgments, not merely at their pigment level, which rest room they use, or how they pray. We do this to honor those that paid the price of the struggle many decades ago and we teach our children the same. True Conservatives, and others, believe that we have come a long way over the last 50+/- years.
Therefore, if you want to discuss the issues in a post-racial environment, find a true Conservative.
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